Stocks Fight, But Close Lower; This Healthcare Play Leads S&P 500

Stocks waged a late battle, but closed lower on Friday in a session upended by economic data and commodities prices and by earnings reports triggering some disastrous declines.

The Dow Jones industrial average fell hardest, down 0.4%. The S&P 500 slipped 0.2%, while the Nasdaq held to losses of less than 0.1%.

Preliminary data showed volume was mixed, higher on the NYSE, lower on the Nasdaq relative to Thursday's close.

After an early retreat, indexes turned higher after 10 a.m. ET, when the University of Michigan released a preliminary, but better-than-expected assessment of consumer sentiment for August.

Energy-related stocks posted some of the day's best gains as oil prices surged more than 3% after 1 p.m., when Baker Hughes' weekly rig count showed rigs working in the U.S. declined by three vs. a week ago. U.S. benchmark West Texas Intermediate crude settled at 48.51, down less than 1% for the week.

For the week, the Dow industrial dipped 0.8% in a second straight weekly decline that left the index in a test of support at its 50-day moving average. The S&P 500 shed 0.7%, also in a second weekly decline and below its 50-day line. The Nasdaq posted a 0.6% slip, its fourth straight down week also ending below its 50-day level.

XIBD 50 stock Control4 (CTRL) scrambled up 9% after Standard & Poor's announced late Thursday the stock would be listed on the S&P Smallcap 600 Index beginning Tuesday. The stock held below a new high, finishing the week up less than 3% and less than 3% below a 25.05 buy point in a flat base.

Gains among Dow industrials held to less than 1%, with Caterpillar (CAT) and Goldman Sachs (GS) leading. Nike (NKE) was the brick, down more than 4% — hit by retailer Foot Locker (FL), which turned in weak quarterly results and dived 28%. Nike's loss sent shares below their 10-week moving average in heavy trade, triggering a sell rule.

Ag and construction equipment maker Deere (DE) furrowed nearly 6% lower, driving the farm machinery group to one of the day's worst performances among industries. The mixed fiscal third-quarter report showed weaker-than-expected sales, but management projected a 24% revenue gain in Q4. Shares pared losses after finding support at their 40-week moving average, but had fallen below their 10-week moving average in heavy trade on Thursday, triggering a sell rule.

China names ended the week with some authority, TAL Education (TAL) rattled off a 4% gain, Alibaba Group Holding (BABA) climbed 2% and YY (YY) rose more than 3%. All three stocks are extended, despite YY's 7% loss for the week.

In the major surprise column, Tenet Healthcare (THC) outran all other S&P 500 stocks, soaring 14% after the sudden resignation of two board members set the stage for a potential proxy war. Tenet shares remain down 32% from a late-July high, following a brutal three-week sell off.

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